26 Insights from the 2018 Employee Financial Well-Being Conference

“Employees who believe that management is concerned about them as a whole person—not just an employee—are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability."

Anne M. Mulcahy, former CEO of Xerox

Differentiating Approaches Across Generations, Income Levels, and Business Models

Financial stress is widespread and of growing concern. It affects every part of an employee’s life, including work. Financial stress has a negative impact on both employees and employers. The cost and impact are both direct and indirect. Even employers with highly compensated workforces identify financial well-being as an important driver of business success. Employers who want to increase engagement and performance must understand financial stress and install well-communicated, holistic programs to mitigate it. Targeting specific sources of stress such as low credit scores and student loan debt can be part of an effective overall plan.

Financial well-being is when you:

Have control over day-to-day, month-to-month finances
Have the capacity to absorb a financial shock
Are on track to meet your financial goals
Have the financial freedom to make the choices that allow you to enjoy life

—US Consumer Financial Protection Bureau

When more than 150 practitioners and experts met to discuss employee financial well-being, we took notes. Here are highlights.

The sources of financial stress are varied, but the results to business are the same: reduced ability to save and reduced effectiveness at work.

Nearly half of US households are living paycheck to paycheck; 37% could not come up with $2,000 if an unexpected need arose within the next month.¹ A company shared that a similar percentage of their employees would have difficulty with a $400 unexpected expense.
Financial stress is influenced by factors including slower wage growth, lower spendable income frequently associated with insurance deductibles and health care costs, and increased debt. Employees are making hard choices: spending versus saving versus paying down debt.
Stress reduces decision-making ability. Recent research links financial strain to cognitive decline, poor healthcare decisions, absenteeism and presenteeism, and lower contributions to and higher withdrawals from tax-saving retir

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